Top 10 Penny Stocks to Watch in August 2025

The US stock market has shown resilience despite political uncertainties and upcoming earnings reports. Investors are seeking opportunities beyond large-cap stocks, including penny stocks. The top 10 penny stocks in the US include Dingdong (DDL), ATRenew (RERE), Waterdrop (WDH), and CuriosityStream (CURI). Cerus Corporation and Allogene Therapeutics are also highlighted, with Cerus generating revenue from its Blood Safety segment and Allogene focused on developing genetically engineered allogeneic T cell therapies for cancer treatment.

The US stock market has shown remarkable resilience despite political uncertainties and the looming earnings reports from key players like Nvidia. This has led investors to explore opportunities beyond the well-established large-cap stocks, with penny stocks emerging as a promising alternative. Penny stocks, representing smaller or newer companies, offer potential growth at a lower entry cost, especially when backed by strong financials and promising business models [1].

One notable example is Dingdong (DDL), a Cayman-based company with a share price of $2.19 and a market cap of $484.33 million. Similarly, ATRenew (RERE) and Waterdrop (WDH) have shown potential with their respective share prices and market caps [1]. Another promising penny stock is CuriosityStream (CURI), which offers personalized learning support services and has a market cap of $257.21 million [1].

Cerus Corporation (CERS) and Allogene Therapeutics (ALLO) are also noteworthy. Cerus, a biomedical products company, generates revenue primarily from its Blood Safety segment, totaling $192.51 million, and has a market cap of $245.37 million [1, 2]. Despite being unprofitable, Cerus has a positive cash flow and sufficient cash runway for over three years. Allogene Therapeutics, a clinical-stage immuno-oncology company, focuses on developing genetically engineered allogeneic T cell therapies for cancer and autoimmune diseases, with a market cap of $257.38 million [1, 2].

Lantronix Inc. (LTRX), another interesting penny stock, is expected to show a fall in quarterly revenue when it reports results on August 27 for the period ending June 30, 2025. The company's revenue is expected to decrease by 42.0% to $28.475 million from $49.08 million a year ago [3]. However, Wall Street's median 12-month price target for Lantronix Inc. is $4.25, indicating potential for growth despite the expected decline in revenue.

In conclusion, the US stock market's resilience has led investors to seek opportunities in penny stocks. Companies like Dingdong, ATRenew, Waterdrop, CuriosityStream, Cerus, Allogene, and Lantronix offer promising growth prospects, particularly when backed by strong financials and promising business models.

References:
1. [1] https://finance.yahoo.com/news/discover-promising-penny-stocks-august-120843260.html
2. [2] https://simplywall.st/stocks/us/healthcare/nasdaq-cers/cerus/news/discover-promising-penny-stocks-this-august-2025
3. [3] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3UH14R:0-lantronix-inc-expected-to-post-earnings-of-1-cent-a-share-earnings-preview/